Comcast's Big Bid Shouldn't Distract From Regulatory Dangers

Comcast Corp.’s $65 billion Bidding for 21st-century Fox assets is a whopper, However Can lead to antitrust complications.


Charles Mostoller/Bloomberg News

Desperate to journey the Justice Division ’so loss for its merger victory,


CMCSA -0.19percent

surprised no one with a fast, competitive bid for the resources which 21st-century Fox

FOX 7.48percent

has agreed to sell to Walt


DIS 1.90percent

At $65 billion, it is doozy of a bid, directed not at wooing the Murdochs from Disney but also at distracting from the regulatory dangers that will come with a Comcast deal.

Fox’s no challenge will be to not allow this brassy number cloud its own judgment. Using the stock trading at recordings, that’ll take a few actual restraint.

In case the Murdochs along with other Fox shareholders need to sober for a moment, they should read the decision of Judge

Richard Leon.

The estimate emphasized (exclamation stage and ) his ruling to approve the merger of


T -6.20percent

and Time Warner had been limited. “The temptation by a few to view this decision to be something more than a resolution of this particular case should really be resisted by you and all! ” he also wrote.

There is another motive to think carefully concerning the regulatory risks of a Comcast deal for Fox’s resources: The Justice Department has retained a close eye on Comcast given that its own merger with NBC, which moved through in 2011 just soon after Comcast decided to specific conditions.

Those states are set to expire in September, giving Comcast new freedom to run its company or do deals, a situation that displeases regulators and makes them more skeptical of any deal which will allow Comcast to ditch further. Although they failed to block AT&T’s perpendicular merger with Time Warner, Comcast-Fox would be another creature –both perpendicular and flat, increasing problems that AT&T-Time Warner didn’t.

These regulatory dangers perform with Disney’so prefer. The corporation has to lift its prior offer, a $52.5 billion all-stock bidding, probably by siphoned it with dollars. However as a Disney deal doesn’t carry the same risks, it doesn’t need to really go as high as Comcast.

Like a desperate suitor, it’s agreed to pay for Fox’s breakup payment with Disney. It can retain increasing its bid to pressure Fox to a offer. That determination could land them both in court docket.